NOTIFICATION NO. G.S.R. 514(E), DATED 29-07-2021
CBDT omits certain rules & Forms; Board to specify e-filing of forms which are prescribed in Appendix II Editorial Note : The CBDT has omitted certain rules and forms notified in Appendix II. However, any proceedings pending before income-tax authority or court shall be continued & disposed of in accordance with such rules and forms. Further, the PDGIT(systems)/DGIT(systems) may specify any of the Forms, returns, statements, etc., prescribed in Appendix II, which shall be furnished electronically.
PRESS RELEASE, DATED 29-07-2021
Tax Dept. conducts search on prominent group in Jharkhand engaged in real estate
Editorial Note : The Income-tax dept. has carried out a search operation on a prominent group in Jharkhand dealing in building construction and real estate. Evidence gathered during the search established that the group had fraudulently got more than 300 acres of forest land registered in its name. Preliminary evidence found suggests evasion of tax of more than Rs. 50 crore.
PRESS RELEASE, DATED 27-07-2021
Net Direct Tax Collections double to Rs. 2.47 lakh crores in 1st quarter of Financial Year 2021-22
Editorial Note : The Minister has stated the Direct tax collection for the first quarter of the current fiscal has doubled. The net direct tax collection in the 1st quarter of FY 2021-2022 is Rs.2,46,519.82 crore as against Rs. 1,17,783.87 crore during the same period of previous FY 2020-21.
PRESS RELEASE, DATED 24-07-2021
Dept. conducted search on ‘Dainik Bhaskar’ Group income escapement of Rs. 700 crore over 6 years detected
Editorial Note : The Income-tax dept. has carried out a search operation on 22.07.2021 on a ‘Dainik Bhaskar’ business group, which is involved in businesses in various sectors, including Media, Power, Textiles, etc. The quantum of income escapement using this modus operandi, detected so far, amounts to Rs. 700 crore spread over a period of 6 years.PRESS RELEASE, DATED 20-07-2021
Forms 15CA/15CB can be filed manually till 15-08-2021: CBDT Editorial Note : In view of difficulties faced by taxpayers in electronic filing of Forms 15CA/15CB on www.incometax.gov.in. The CBDT has decided that taxpayers can submit the aforesaid Forms in manual format to the authorized
dealers till June 30, 2021. Said date was extended to July 15, 2021. Now, the board has given further relaxation and allowed manual filing of Forms till August 15, 2021NOTIFICATION NO. S.O. 2826(E) &S.O. 2827(E), DATED 14-07-2021
CBDT notifies certain entities for exemption under section 10(46)
Editorial Note : The Central Board of Direct Taxes (CBDT) has notified ‘Himachal Pradesh Computerization of Police Society’ & ‘Haryana Labour Welfare Board’ for the purposes of the clause (46) of section 10 of the Income-tax Act, 1961
PRESS RELEASE, DATED 13-07-2021
Tax dept. conducts survey in Bengaluru; detects concealed income of around 880 crores
Editorial Note: Income-tax Department has carried out a survey operation on 08.07.2021 on two business premises in Bengaluru on one of India’s leading manpower services provider. It was found that assessee was wrongfully claiming deduction under section 80JJAA by excluding certain components of emoluments of employees to fit into the eligible emoluments limit of Rs. 25,000per month. The survey has resulted in detection of concealment of income to the tune of Rs. 880 crore spread over various assessment years.
PRESS RELEASE, DATED 09-07-2021
Dept. conducts search at Hyderabad; detects artificial loss of Rs. 1200 crore created by assessee to set off capital gains.
Editorial Note: The Income – tax Department has carried out search and seizure action on 06-07-2021 on a group based in Hyderabad. Incriminating evidence/documents have been recovered, which indicate that the loss was artificially created to set off the respective capital gains. The search operation led to detection of artificial loss of approximately Rs. 1,200 crore, which is to be taxed in the hands of the respective assessees.NOTIFICATION NO. 77/2021, DATED 07-07-2021
CBDT notifies rule for computation of capital gain &WDV u/s 50 if dep. was claimed on goodwill
Editorial Note: The Central Board of Direct Taxes (CBDT) has notified a new Rule 8AC which prescribes the manner for computation of short-term capital gains and written down value under section 50 if depreciation has been obtained by assessee.
NOTIFICATION F. NO.225/98/2020/ITA-II, DATED 05-07-2021
Time-bared ITRs with refund claim which were filed up to AY 2017-18 to be processed by 30-09-2021: CBDT
Editorial Note : The CBDT has directed that all validity filed returns up to Assessment Year 2017-18 with refund claims, which have become time barred, can be processed now with the prior administrative approval of Pr. CCIT/CCIT concerned. The intimation of such processing can be sent to assessee by 30-09-2021.NOTIFICATION NO. G.S.R. 470(E), DATED 02-07-2021
CBDT notifies Rule 8AB for computation of sum attributable to capital asset u/s 48(iii)
Editorial Note : The Central Board of Direct Taxes (CBDT) has notified a new Rule 8AB to the Income-tax Rules, 1962 to prescribe manner to compute attribution of income taxable under section 45(4) to the capital assets remaining with the specified entity for the purpose of section 48(iii). Specified entities are also required to furnish the details in Form no. 5C.
RECENT JUDICIAL RULINGS ON INCOME TAX
SECTION 28(i) OF THE INCOME – TAX ACT, 1961 – BUSINESS INCOME – CHARGEABLE AS
Where assessee received RBI bond instead of cash as a consideration for project undertaken in Iraq as sub-contractor and incurred loss on sale of bond, since assessee is recording notional loss or profit on revaluation of earlier years as well and considering nature of business assessee has been doing, bonds are rightly treated as current assets in facts and circumstances of case and assessee was entitled to claim loss on sale of RBI bond – Commissioner of Income-tax, Cochin v. Bhageeratha Engineering Ltd. – [2021] 128 taxmann.com 425 (Kerala)
SECTION 68 OF THE INCOME-TAX ACT, 1961 – CASH CREDIT
Bank deposits post demonetization : Where AO made addition under section 68 on account of huge cash amount deposited by assessee-jeweller in its bank account post demonetization, since assessee had explained source of said cash deposits as sales of jewellery, produced sale bills and admitted same as revenue receipt as well as offered it to tax and assessee also represented outgo of stocks which was matching with sales, impugned addition was to be deleted – Assistant Commissioner of Income Tax, Central Cirle – 1, Visakhapatnam v. HirapannaJewellers – [2021] 128 taxmann.com 291 (Visakhapatnam – Trib.)
SECTION 69 OF THE INCOME-TAX ACT, 1961 – UNEXPLAINED INVESTMENTS
Reassessment : Where assessee fully disclosed all material facts related to purchase and lease back transactions of machineries and block assessment order holding depreciation claimed on said machineries as undisclosed income was quashed after considering genuinity of said transactions, there being no fresh tangible material available with Assessing Officer, notice under section 148 could not be issued to examine genuinity of very same lease transactions – Seshasayee Paper & Boards Ltd. v. Union of India – [2021] 128 taxmann.com 293 (Madras)
SECTION 92C OF THE INCOME – TAX ACT, 1961 – TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE
Failure on part of Assessing Officer to follow procedure under section 144C(1) is not a merely procedural or inadvertent error, but a breach of a mandatory provision. By not following procedure laid down in section 144C(1) to pass and furnish a draft Assessment Order to assessee and directly passing a final Assessment Order without giving assessee an opportunity to raise objections before DRP, there is a complete contravention of section 144C, Assessing Officer having wrongly assumed jurisdiction to straight away pass final order. This is not a mere irregularity but an incurable illegality. Even provisions of section 292B would not protect such an order as section 292B cannot be read to confer jurisdiction on Assessing Offcer, where none exists – SHL (India) (P.) Ltd. v. Deputy Commissioner of Income-tax – [2021] 128 taxmann.com 426 (Bombay)
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